Cumberland Partners Ltd Grows Position in Paycom Software, Inc. (NYSE:PAYC)

Key Points

• Cumberland Partners Ltd increased its ownership in Paycom Software by 64.5%, owning 14,025 shares valued at approximately $3.06 million after acquiring an additional 5,500 shares in the first quarter.
• Wall Street analysts have adjusted their price targets for Paycom Software, with Piper Sandler raising it from $224.00 to $246.00, and seven firms maintaining or issuing "hold" ratings.
• Paycom Software recently announced a quarterly dividend of $0.375 per share, reflecting an annualized payout and a yield of 0.7%.

Cumberland Partners Ltd lifted its position in shares of Paycom Software, Inc. (NYSE:PAYC - Free Report) by 64.5% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,025 shares of the software maker's stock after acquiring an additional 5,500 shares during the quarter. Cumberland Partners Ltd's holdings in Paycom Software were worth $3,064,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. Commerce Bank raised its holdings in Paycom Software by 2.2% in the 1st quarter. Commerce Bank now owns 2,351 shares of the software maker's stock valued at $514,000 after acquiring an additional 50 shares during the last quarter. Allworth Financial LP increased its holdings in Paycom Software by 12.9% in the 1st quarter. Allworth Financial LP now owns 464 shares of the software maker's stock valued at $105,000 after purchasing an additional 53 shares in the last quarter. US Bancorp DE increased its holdings in Paycom Software by 0.5% in the 1st quarter. US Bancorp DE now owns 10,421 shares of the software maker's stock valued at $2,277,000 after purchasing an additional 57 shares in the last quarter. Salvus Wealth Management LLC increased its holdings in Paycom Software by 4.9% in the 1st quarter. Salvus Wealth Management LLC now owns 1,238 shares of the software maker's stock valued at $270,000 after purchasing an additional 58 shares in the last quarter. Finally, Burns Matteson Capital Management LLC boosted its holdings in Paycom Software by 2.5% in the first quarter. Burns Matteson Capital Management LLC now owns 2,348 shares of the software maker's stock valued at $513,000 after purchasing an additional 58 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Paycom Software Stock Performance

Paycom Software stock traded up $3.02 during mid-day trading on Monday, reaching $229.46. The company's stock had a trading volume of 566,688 shares, compared to its average volume of 492,422. The company has a market capitalization of $13.27 billion, a price-to-earnings ratio of 32.73, a price-to-earnings-growth ratio of 2.49 and a beta of 0.81. Paycom Software, Inc. has a 12 month low of $152.46 and a 12 month high of $267.76. The business's 50 day simple moving average is $239.49 and its 200 day simple moving average is $226.60.

Paycom Software (NYSE:PAYC - Get Free Report) last posted its earnings results on Wednesday, May 7th. The software maker reported $2.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.62 by $0.18. Paycom Software had a net margin of 20.60% and a return on equity of 25.53%. The company had revenue of $530.50 million during the quarter, compared to analysts' expectations of $522.92 million. During the same quarter last year, the company posted $2.59 EPS. Paycom Software's quarterly revenue was up 6.1% compared to the same quarter last year. As a group, sell-side analysts expect that Paycom Software, Inc. will post 7.15 EPS for the current year.

Paycom Software Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 25th will be given a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 0.7%. Paycom Software's dividend payout ratio is presently 21.40%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on PAYC. BMO Capital Markets increased their price target on shares of Paycom Software from $215.00 to $244.00 and gave the stock a "market perform" rating in a research report on Thursday, May 8th. KeyCorp raised their price objective on shares of Paycom Software from $245.00 to $270.00 and gave the company an "overweight" rating in a research note on Thursday, May 8th. Piper Sandler lifted their price target on shares of Paycom Software from $224.00 to $246.00 and gave the stock a "neutral" rating in a research report on Thursday, May 8th. Barclays lifted their price target on shares of Paycom Software from $221.00 to $240.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 8th. Finally, Stifel Nicolaus lifted their price target on shares of Paycom Software from $187.00 to $215.00 and gave the stock a "hold" rating in a research report on Thursday, May 8th. Eleven analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $226.90.

Insider Buying and Selling

In other news, COO Randall Peck sold 890 shares of the business's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $263.21, for a total value of $234,256.90. Following the transaction, the chief operating officer owned 49,394 shares in the company, valued at approximately $13,000,994.74. The trade was a 1.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Chad R. Richison sold 23,200 shares of the business's stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $265.20, for a total transaction of $6,152,640.00. Following the sale, the chief executive officer owned 3,224,049 shares of the company's stock, valued at $855,017,794.80. This trade represents a 0.71% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 172,016 shares of company stock worth $42,736,608 in the last ninety days. Company insiders own 10.90% of the company's stock.

Paycom Software Profile

Paycom Software, Inc provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.